Tax Law Advocates provides assistance to taxpayers who need help with criminal tax exposure issues. The IRS Voluntary Disclosure Program (VDP) provides taxpayers with a legal way to fix their tax compliance problems while reducing their chances of facing criminal prosecution. This blog post examines the essential elements of the VDP program and its advantages and explains how Tax Law Advocates will support you throughout the complicated disclosure process.

What Is the IRS Voluntary Disclosure Program?

The IRS Voluntary Disclosure Program exists to help taxpayers who intentionally failed to follow tax laws and want to fix their noncompliance issues. Taxpayers who disclose previously hidden income and tax-related problems through the VDP program may escape criminal prosecution. The VDP program does not provide absolute protection from prosecution but the IRS uses it as a major factor when deciding whether to pursue criminal charges against taxpayers.

Eligibility Criteria for the VDP

The VDP accepts participants who fulfill these particular requirements:

  • The disclosure process requires complete accuracy and timely submission before the IRS starts any civil examination or criminal investigation or receives information about noncompliance from third parties or enforcement actions.
  • The taxpayer needs to work with the IRS to determine their correct tax amount and establish payment plans for the full amount of tax debt and interest and penalties.
  • The VDP program excludes all income that stems from criminal activities.

The Application Process

The VDP application process requires multiple stages for completion.

  • Taxpayers who want to enter the VDP need to file Part I of Form 14457 with the IRS Criminal Investigation division to request preclearance.
  • The taxpayer needs to submit Part II of Form 14457 to the IRS within 45 days after receiving preclearance approval.
  • The IRS transfers accepted cases to their civil examination section for further review.
  • The taxpayer needs to work with the examiner by providing all required documents and accepting the calculated tax amount with interest and penalties.

Benefits of Participating in the VDP

The VDP program provides several advantages to participants who join the program.

  • The IRS uses voluntary disclosure as a major factor to decide whether to pursue criminal prosecution against taxpayers.
  • The program helps taxpayers solve their tax debt problems through a defined process that includes paying taxes and penalties and interest.
  • Taxpayers who become compliant with the law can experience reduced anxiety because they avoid IRS enforcement actions.

How Tax Law Advocates Can Assist You

The VDP application process demands thorough evaluation because it contains many complex elements. Tax Law Advocates provides complete assistance to clients who need help with VDP applications.

  • Our team determines your eligibility for the VDP program based on your individual circumstances to establish if this program suits your needs.
  • Our team helps clients collect and arrange all required documents needed for the application process.
  • Our team represents you during all IRS interactions to safeguard your rights and maintain a smooth application process.
  • Our team of experts works to secure the best possible agreement which includes payment plans and penalty reductions.

Taking the First Step Toward Compliance

You must handle all past tax law violations through immediate action because non-action will lead to severe penalties. The IRS Voluntary Disclosure Program enables taxpayers to fix their tax problems while staying clear of major penalties. Our team at Tax Law Advocates provides expert guidance to help you navigate the VDP process while maintaining complete confidentiality. Our team is ready to provide a private consultation for your tax matter resolution needs.